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Unformatted text preview: EQUILIBRIUM OF
THE Good Y The market b;
that will maxit BUDGET LINE Good Y consumer’s L The budget line shows
the one on th‘ all the combinations line that is on of quantities of goods 1 I
per_highest Xand Ythat the P,
Iridlﬁerence C consumer can buy. The
slope of the budget
line equals - P /Py.
0 1 I Good X ...
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- Spring '10